成果快原包-會(huì)計(jì)

1、Exercises Match Items to F/S & Categories(1) A/R (make sales on account, on credit)(2) Purchase supplies on an open account(3) Dividend(4) Dividend Payable(5) e Tax Expense(6) Interest Revenue(7) Prepaid Rent(8) COGS(9) Contributed Capital(10) Cash Flow from Operations(11) Wage Payable(12) Retained

2、Earnings(13) InventoryExercises True/False Questions (1) Accounting model for B/S is: A+L=SE (2) The accounting period in which service revenue is recognized is generally the period in which the cash is collected (3) The amount of cash paid by a business for office rent would be reported on the stat

3、ement of cash flows as a financing activity (4) If expenses are understated on the I/S, stockholders equity is overstated on the B/SChapter 2Investing and Financing Decisions and the Balance SheetUnderstanding the BusinessTo understand amounts appearingon a companys balance sheet weneed to answer th

4、ese questions:What businessactivities causechanges inthe balancesheet?How dospecificactivitiesaffect eachbalance?How do companieskeep track ofbalance sheetamounts?Learning ObjectivesAccounting focuses on the events that have an economic impact on the entity, called transaction.What businessactivitie

5、s causechanges inthe balancesheet?LO1Nature of Business TransactionsExternal events: exchanges of assetsand liabilities between the businessand one or more other parties.Borrow cashfrom the bankNature of Business TransactionsInternal events: not an exchange betweenthe business and other parties, but

6、 havea direct effect on the accounting entity.Loss due to fire damage.Nature of Business TransactionsAre they transactions?(1) Take orders from customer(3) Property, plant and equipment are used to make products(2) Air China receives $500 on May 21, 2011, for the flight on August 2, 2011 Accounts (帳

7、戶(hù))CashEquipmentInventoryNotes PayableAn organized format used by companies to accumulate the dollar effects of transactions.Typical Account TitlesAssetsCashShort-Term InvestmentAccounts ReceivableNotes ReceivableInventory (to be sold)SuppliesPrepaid ExpensesLong-Term InvestmentsEquipmentBuildingsLan

8、dIntangiblesLiabilitiesAccounts PayableAccrued ExpensesNotes PayableTaxes PayableUnearned Revenue Bonds PayableStockholders EquityContributed CapitalRetained EarningsThe Balance SheetTypical Account TitlesRevenuesSales RevenueFee RevenueInterest RevenueRent RevenueExpensesCost of Goods SoldWages Exp

9、enseRent ExpenseInterest ExpenseDepreciation ExpenseAdvertising ExpenseInsurance ExpenseRepair Expense e Tax ExpenseThe e StatementUnderstanding the BusinessTo understand amounts appearingon a companys balance sheet weneed to answer these questions:What businessactivities causechanges inthe balances

10、heet?How dospecificactivitiesaffect eachbalance?How do companieskeep track ofbalance sheetamounts? Learning ObjectivesApply transaction analysis to simple business transactions in terms of the accounting model:Assets = Liabilities + Stockholders EquityLO2How dotransactionsaffect eachbalance?Principl

11、es of Transaction AnalysisEvery transaction affects at least two accounts (duality of effects).The accounting equation must remain in balance after each transaction.A = L + SE(Assets)(Liabilities)(StockholdersEquity)Duality of Effects Most transactions with external parties involve an exchange where

12、 the business entity gives up something but receives something in return.Balancing the Accounting EquationAccounts and effectsIdentify the accounts affected and classify them by type of account (A, L, SE).Determine the direction of the effect (increase or decrease) on each account.BalancingVerify th

13、at the accounting equation (A = L + SE) remains in balance. Balancing the Accounting EquationLets see how we keep theaccounting equation in balance for Papa Johns.All amounts we use are expressed in thousands of dollars.Identify & Classify the AccountsDetermine the Direction of the Effect(a) Papa Jo

14、hns issues $2,000 of additional common stock to new investors for cash.Identify & Classify the AccountsDetermine the Direction of the Effect(a) Papa Johns issues $2,000 of additional common stock to new investors for cash.A = L + SEIdentify & Classify the AccountsDetermine the Direction of the Effec

15、t (b) The company borrows $6,000 from the local bank, signing a three-year note.Identify & Classify the AccountsDetermine the Direction of the EffectA = L + SE (b) The company borrows $6,000 from the local bank, signing a three-year note.Determine the Direction of the EffectIdentify & Classify the A

16、ccounts (c) Papa Johns purchases $10,000 of new equipment, paying $2,000 in cash and signing a two-year note payable for the rest.Identify & Classify the AccountsDetermine the Direction of the EffectA = L + SE (c) Papa Johns purchases $10,000 of new equipment, paying $2,000 in cash and signing a two

17、-year note payable for the rest.Identify & Classify the AccountsDetermine the Direction of the Effect (d) Papa Johns lends $3,000 to new franchisees who sign five-year notes agreeing to repay the loan.Identify & Classify the AccountsDetermine the Direction of the EffectA = L + SE (d) Papa Johns lend

18、s $3,000 to new franchisees who sign five-year notes agreeing to repay the loan.Identify & Classify the AccountsDetermine the Direction of the Effect(e) Papa Johns purchases $1,000 of stock in other companies as an investment.Identify & Classify the AccountsDetermine the Direction of the EffectA = L

19、 + SE(e) Papa Johns purchases $1,000 of stock in other companies as an investment.Identify & Classify the AccountsDetermine the Direction of the Effect(f) Papa Johns board of directors declares and pays $3,000 in dividends to shareholdersIdentify & Classify the AccountsDetermine the Direction of the

20、 EffectA = L + SE(f) Papa Johns board of directors declares and pays $3,000 in dividends to shareholdersSummary2 principles for transaction analysisDuality of effectsBalance of BS equation 2 steps for transaction analysisAccounts & effectsBalances the BS equationHow dotransactionsaffect eachbalance?

21、Understanding the BusinessTo understand amounts appearingon a companys balance sheet weneed to answer these questions:What businessactivities causechanges inthe balancesheet?How dospecificactivitiesaffect eachbalance?How do companieskeep track ofbalance sheetamounts? Learning ObjectivesLO3How do com

22、panieskeep track ofbalance sheetamounts?How Do Companies Keep Track of Account Balances?Journal entries(分錄記帳)T-accounts (T字帳)Direction of Transaction Effects The left side of the T-account is always the debit side.Account NameLeftRightDebit The right side of the T-account is always the credit side.C

23、reditA T-account is a tool used to represent an account.A = L + SEThe Debit-Credit FrameworkASSETSDebit for IncreaseCredit for DecreaseEQUITIESDebit for DecreaseCredit for IncreaseLIABILITIESDebit for DecreaseCredit for IncreaseDebits and credits affect the Balance Sheet Model as follows:In every en

24、try the sum of the debits always equal the sum of the credits.A = L + SEThe Debit-Credit FrameworkCash$2,000C.C.$2,000LIABILITIESPapa Johns issued $2,000 stocks to investors for cash.A typical journal (日記帳) looks like this:Analytical Tool: The Journal EntryAnalytical Tool: The Journal EntryA journal

25、 entry might look like this:Analytical Tool: The Journal EntryProvide a referencedate for each transaction.Debits are written first.Credits are indented andwritten after debits.Total debits must equaltotal credits.PostLedger(總帳)Analytical Tool: The T-Account After journal entries are prepared, the a

26、ccountant posts (transfers) the dollar amounts to each T-account affected by the transaction.Transaction Analysis IllustratedLets prepare some journal entries for Papa Johns and post them to the T-accounts.(a) Papa Johns issues $2,000 of additional common stock to new investors for cash.(a) (b) The

27、company borrows $6,000 from the local bank, signing a one-year note.(b)Lets see how to post this entry . . . (c) Papa Johns purchases $10,000 of new equipment, paying $2,000 in cash and signing a two-year note payable for the rest.(c)Papa Johns purchases $10,000 of new equipment, paying $2,000 in ca

28、sh and signing a two-year note payable for the rest.The Accounting Cycle During the period:Analyze transactions.Record journal entries in the general journal.Post amounts to the general ledger. End of the period:Adjust revenues and expensesand related balance sheet accounts.Prepare a completeset of

29、financial statements.Disseminate statementsto users.Close revenues, gains,expenses and lossesto retained earnings. Learning ObjectivesAnalyze a simple balance sheetusing the financial leverage ratio.LO4Key Ratio AnalysisFinancialLeverage Ratio(財(cái)務(wù)杠桿率)Average Total AssetsAverage Stockholders Equity=(B

30、eginning Balance + Ending Balance) 2This ratio measures the relation between total assets and the stockholders equity that finances the assets.An increasing ratio over time signals more reliance on debt financing and more risk.Financial Leverage Ratio 2009 2010 2011 TA $395,658 $372,051 $409,000SE $

31、166,312 $292,133 $165,000Financial leverage ratio for 2010 & 2011?Competitors: 1.96Comments? Learning ObjectivesDefine the objective of financial reporting, and the related key accounting assumptions and principles.LO5The Conceptual FrameworkElements of StatementsAssetLiabilityStockholders EquityRev

32、enueExpenseGainLossObjective of Financial ReportingTo provide useful economic information to external users for decision making and for assessing future cash flows.Qualitative CharacteristicsRelevancy(相關(guān)性)Reliability (可靠性)Comparability (可比性)Consistency (一致性)Elements of StatementsAssetLiabilityStockh

33、olders EquityRevenueExpenseGainLossThe Conceptual FrameworkQualitative CharacteristicsRelevancyReliabilityComparabilityConsistencyObjective of Financial ReportingTo provide useful economic information to external users for decision making and for assessing future cash flows.Primary CharacteristicsRelevancy: predictive value, feedback value, and timeliness.Reliability: verifiability, representational faithfulness, and neutrality. Secondary Charact